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Rule 25
Basis for distribution of funds from protected capital return fund
: (1) According to sub-section (3) of section 69 of the Act, while distributing funds to members from protected capital return fund: the basis of annual turnover shall be taken as follows :-
(a) Purchase price of produce sold to the organization by a member in a producer organization,
(b) Interest paid on the amount of savings deposited by the member in the financial institution,
(c) the value of goods or services purchased by a member of a consumer-related organization from the organization,
(d) _ Wages received by a member of a labor-related organization from the organization,
(e) the basis mentioned in clauses (a), (b), (c) and (d) in multi-purpose institutions.
(2) Regardless of what is written in clause (a) of sub-rule (1), such transaction can also be counted as the sale of necessary materials by the producer organization to the member.
(3) Notwithstanding anything written in clause (b) of sub-rule (1), the protected capital shall not be returned to the member who has not paid the installments on the basis of the interest paid in such installments. (4) In accordance with clause (b) of sub-rule (1), the amount of the fund shall be distributed by giving a weightage of forty percent for the savings amount and sixty percent for the interest amount paid in installments.
(5) The amount of protected capital return fund of last financial year's business should be distributed within the current financial year.
(6) According to sub-rule (5), the remaining amount distributed in any financial year shall be transferred to the reserve fund at the end of the same financial year.
(7) Other arrangements related to return of protected capital shall be as determined by the department.